BOARD MEETING DATE: October 3, 2008
AGENDA NO. 7
PROPOSAL:
Approve Amendment of Proposition 1B Early Grant Award
SYNOPSIS:
In May 2008, the Board recognized $13.8 million from CARB under the Proposition 1B "Early Grant" Goods Movement Program and approved awards for replacement of 260 pre-2003 heavy-duty diesel trucks with 2007 or newer diesel and LNG trucks. KKW Trucking declined an award of $250,000 to replace five trucks, so this action is to re-allocate these funds to two other Proposition 1B Early Grant award recipients. BCI Coca-Cola Bottling Co. will replace three trucks at a cost of $150,000, and Dependable Highway Express will replace two trucks at a cost of $100,000. The five trucks belonging to the above recommended entities were selected from the existing competitively ranked list in accordance with the Proposition 1B guidelines and CARB's concurrence.
COMMITTEE:
Technology, September 19, 2008, Recommended for Approval
RECOMMENDED ACTIONS:
Authorize the Chairman to approve amendment of Proposition 1B “Early Grant” award by reallocating $250,000, originally awarded to KKW Trucking on May 2, 2008, to the following companies:
- BCI Coca-Cola Bottling Co. to replace three Class 8, pre-2003 diesel trucks (pre-2003 engines) with Class 8, 2007 or newer diesel trucks (2007 or newer engines) in an amount not to exceed $150,000; and
- Dependable Highway Express to replace two Class 8, pre-2003 diesel trucks (pre-2003 engine) with Class 8, 2007 or newer diesel truck (2007 or newer engine) in an amount not to exceed $100,000.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
In May 2008, the Board recognized $13.8 million from CARB under the Proposition 1B “Early Grant” Goods Movement Program and approved awards for replacement of 260 pre-2003 heavy-duty diesel trucks with 2007 or newer diesel or LNG trucks.
One of the awards approved by the Board was to KKW Trucking to replace five trucks in an amount not to exceed $250,000; however, KKW Trucking has subsequently declined the award. The declined funds must therefore be reallocated to the next highest ranked trucks from the eligible list of trucks as evaluated by AQMD staff and approved by CARB.
Proposal
This action is to re-allocate the available $250,000 to BCI Coca-Cola Bottling Co. for the replacement of three pre-2003, Class 8, diesel trucks with 2007 or newer trucks in an amount not to exceed $150,000 and to Dependable Highway Express for the replacement of two pre-2003, Class 8 diesel trucks with a 2007 or newer truck in an amount not to exceed $100,000 from the Proposition 1B Goods Movement Program Fund.
Outreach
CARB released a Staff Draft Concepts for Implementation paper on September 17, 2007 to share their proposal on implementing the Goods Movement Emission Reduction Program and to initiate the public discussion. In October 2007, CARB held five public workshops around the State to educate the public on the program and garner suggestions on improving the program implementation.
AQMD did not have an opportunity to hold public workshops for the Early Grant Program due to the tight time constraints required for submittals, but worked closely with the California Trucking Association and the California Dump Truck Owners Association in soliciting applications for the program. In addition, AQMD retained the services of several consultants such as TIAX LLC, Gladstein, Neandross & Associates, and Sol Source Energy in soliciting potential applicants.
Benefits to AQMD
The successful implementation of the proposed projects will reduce NOx and PM emissions in a cost-effective and expeditious manner to meet the goals of the 2007 AQMP. For example, the LNG truck engines are certified to the lowest NOx emissions standards of any heavy-duty engine available to date, representing the reduction of over 80% in NOx emissions. These vehicles funded under this program will operate many years and will provide long-term emission reductions.
Sole-Source Justification
Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. It is requested that a sole source award be made under provision B.2.d.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD. Specifically, these circumstances are: B.2.d.(1) Project involving cost-sharing by multiple sponsors. CARB will be providing $13.8 million to this Early Grant program and upon receipt of the Section 103 Federal Grant, there will be an additional $4.922 million of Federal cost-share provided.
Resource Impacts
The above proposed projects will be funded from the $250,000 originally allocated to KKW Trucking from the Proposition 1B Good Movement Program Fund 81.